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ALIA Webinar: Base Oil Supply and Demand
February 6, 2025 @ 2:00 pm - 3:00 pm
Don’t miss the ALIA Webinar on Base Oil Supply and Demand, happening on February 6, 2025, from 2:00 PM to 3:00 PM SGT. This insightful session will feature Milind Phadke, a seasoned expert and Vice President, Energy at KLINE & Company, alongside moderator Paul Nai, Regional Business Director of Lubrizol South East Asia (Pte) Ltd., and Chair of the ALIA Technology Subcommittee.
Abstract
New Business Opportunities for Basestock Marketers
Lubricant basestocks are the primary precursor for blending finished lubricants. At the same time, basestocks do not have any volumetrically significant applications excluding finished lubricants. As a result, trends that impact the finished lubricants market impact the basestocks market though with some time lag and other distortions.
The dominant trends impacting the finished lubricants, have one underlying driver: decarbonization. Electrification will drive a decline in PCMO consumption and to a much lower extent and in the mid-to long term HDMO consumption. This will have the most impact on Group III/III+ and Group II. In addition, growing considerations around product carbon footprint (PCF) and circularity create new challenges and opportunities for basestocks marketers.
The supply base for basestocks is not static. If all the announced capacity additions see the light of day, both Group II/II+ and Group III/III+ will see global capacity increase by around 15% each by 2043 – most of which will happen in the next 5 years. This will have to be compensated by an equivalent reduction in Group I to balance the market. In reality, the reduction in Group I supply could be higher depending on the actual electrification pathway and the actual surplus in the global market.
How do basestocks marketers navigate this market dynamic? Depending on each marketer’s unique business environment, three “fronts” emerge:
1. The search for value: How can basestocks marketers extract incremental value in a fast-commoditizing product?
2. The search for growth: New applications – What are the emerging applications for basestocks? How can basestock companies prepare themselves to tap emerging opportunities?
3. The search for optimal footprint: Circularity and PCF in lubricants – What are the risks and opportunities represented by circularity and PCF? How can basestocks companies tackle the risk posed by PCF and RRBOs?
In this webinar, we will outline the current and future basestocks market. We will then explore what these three “fronts” mean for basestocks marketers.
Webinar Details:
📅 Date: February 6, 2025
⏰ Time: 2:00 PM – 3:00 PM SGT
💬 Topic: Base Oil Supply and Demand
🎤 Speaker: Milind Phadke, Vice President, Energy at KLINE & Company
🛡️ Moderator: Paul Nai, Regional Business Director, Lubrizol South East Asia (Pte) Ltd., and Chair of the ALIA Technology Subcommittee
Registration closes on February 4, 2025 at 6:00 PM SGT. Free for ALIA members. For non-members, tickets are US$50 per person.
To register, click here: (https://www.tickettailor.com/